A Formula that Works

Issue 12.06

February 13, 2026

BEYOND FEDERAL FUNDS

CHARTING A PRO-BUSINESS COURSE FOR DELAWARE, THE SMALL STATE THAT CAN DELIVER BIG RESULTS

The Federal Government is over $38 trillion in debt — more than $112,000 for every person in the United States. This past year, $1.8 trillion was added to the debt as trillion-dollar deficits, once unthinkable outside of war or national crisis, become the norm. Last year, the federal government spent more on interest payments on the nation’s debt than on defense. Because this cannot continue indefinitely, it will not. Read more >

FAST FACT: Federal spending constitutes a significant portion of most state budgets — 36% on average in 2023. In Delaware, federal funds make up approximately 30% of the state budget, a sizeable share of annual spending.

A FORMULA THAT WORKS

PRESERVING DELAWARE’S ECONOMIC RESILIENCY THROUGH PREDICTABLE TAX POLICY

Delaware's economy punches well above its weight because it has built a focused, predictable environment that attracts investment, supports employers, and encourages job creation. But we must be forthright and clear-eyed in our efforts to preserve our state’s economic resiliency.

In assessing the state’s economic development and competitiveness, three strengths stand out: its reputation as the nation’s preeminent corporate home, its lack of a statewide sales tax, and a stable personal income tax structure. Preserving these features — while exercising fiscal discipline in government spending — is essential to maintaining and expanding Delaware’s advantage. Read more >

TAX COMPETITIVENESS SNAPSHOT

Delaware ranks 24th nationally in the Tax Foundation’s State Tax Competitiveness Index — solidly middle of the pack overall, but still ahead of neighboring Pennsylvania (#36), Maryland (#46), and New Jersey (#49). Maintaining this regional edge remains critical to sustaining Delaware’s competitiveness. Read more >

24TH

overall ranking

50TH

corporate taxes

43RD

individual income taxes

2ND

sales taxes

2ND

unemployment insurance taxes

2ND

property taxes

BANKING ON DELAWARE'S FUTURE

A Q&A WITH DELAWARE BANKERS ASSOCIATION PRESIDENT, CEO, AND TREASURER KARYN POLAK

As Delaware's financial sector continues to evolve, banking leaders are reevaluating how policy decisions, regulatory shifts, and broader economic forces will shape the industry’s future. In a year marked by consolidation, technological change, and heightened focus on consumer protection, the banking community plays a central role in Delaware’s economic outlook. To better understand these dynamics — and what they mean for the state’s long-term competitiveness — we spoke with Karyn Polak, the president, CEO, and treasurer of the Delaware Bankers Association, for her perspective on where Delaware’s banking landscape is headed. Read the full interview >

DON'T FORGET TO NOMINATE!

PUT FORWARD YOUR FAVORITE PRODUCTS FOR THE COOLEST THING MADE IN DELAWARE COMPETITION

Your favorite local craft beer. Locally produced specialty foods. A breakthrough medical device. Construction materials used across the region. Beauty or wellness products manufactured locally. The component powering the next big innovation.

If it’s manufactured in Delaware, it belongs in the competition. There’s no limit to submissions! Nominate a product >

PRESIDENT'S MESSAGE

Last Friday afternoon, I had the opportunity to witness the ribbon cutting of the Mountaire Farms Industrial and Technical Training Center in Selbyville. Mountaire joins a growing list of companies that are organizing formal onsite training facilities and programs for employees. The training site is across the street from a processing plant and administrative offices and is situated in what was a single-family home that has been completely remodeled, transforming former living spaces into classrooms. In a word, it’s impressive. Read more >

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